Silver Shines Brighter: Can it Outperform Gold in 2024?

Silver, often overshadowed by its golden counterpart, is making a case for itself as a potentially superior investment in 2024. A recent report from the Silver Institute fuels this narrative, predicting silver demand to surpass 1.2 billion ounces, exceeding its 2023 figures and potentially outperforming gold as an asset class.

Silver’s Demand Surge

The Silver Institute report highlights several factors driving silver demand:

• Industrial applications: Silver’s unique electrical and thermal conductivity make it crucial for sectors like electronics, solar panels, and electric vehicles, all experiencing significant growth.
• Investment demand: Rising inflation and geopolitical uncertainties push investors towards safe-haven assets like silver, potentially increasing its appeal.
• Limited supply: Silver production is expected to plateau in the coming years, potentially creating supply constraints and price pressure.

Analyst Insights on Silver as an Investment

Analysts offer varying perspectives on Silver’s potential:

• Bullish: Some experts see rising demand outpacing supply, leading to significant price appreciation. They favor silver for its industrial diversification and lower price point compared to gold.
• Cautious: Others warn of short-term volatility and advise prudent entry points. They suggest considering silver as part of a diversified portfolio, balancing its potential with inherent risks.

XAG/USD Technical Analysis

• Current Price: $22.34
• Trend: Upward trend since late 2023, but recent sideways movement suggests consolidation.
• Support/Resistance: Immediate support near $22, followed by $21. Key resistance at $25 and then $27.
• Indicators: RSI around 50, indicating neutral territory.